Renting a house is a good way of earning additional income. Therefore, if you have a second home or a property that is vacant, then it is great to start thinking of earning some more money. Moreover, with all the facilities and the wide variety of several rental arrangements that are available, it is easy for owners to find a way to rent their property. Furthermore, there are several factors to ponder upon when dealing in renting business. Start by figuring out your consolidated credit since housing accounts for the largest part of your budget.
Nevertheless, becoming a landlord is also a big risk and requires lots of work and knowledge in the field. Read ahead to get clear information on the top tips to consider.
- Physical inspection of the house
If you are thinking of renting a house, then it is important to get a thorough, physical inspection of the house by a qualified professional. This step will be easy to get an estimate of all the major jobs that should be undertaken in the house before putting it on rent. Be realistic on the repairs that you can do on your own and those that would require contractors. Before anyone moves in the house, it is good that all repairs are done and that the house is in a livable state.
- Run a credit check
Your primary responsibility as a landlord is to make sure you run a credit check on your potential tenant before approving their stay. By performing a credit check, you will have an idea of any consolidated credit discrepancies. You will discover all the information required about a tenant when you run a credit check. The credit check will give details on the tenant’s history of paying their bills and verify their income to debt ratio. Moreover, you will get details of prior evictions if ever the tenant has gone through this process.
- House documents
The next tips that should be taken into consideration while renting a house are the house documents. This is an important document that should be prepared and get approved by both the tenant and the landlord. Before preparing the document, study the tenant and landlord laws as per your stated. Be knowledgeable about your obligations when dealing with tenants. That is learning how to get the lease agreement ready and how much you should take as a security deposit. Finally, prepare the contract by adding the rent monthly cost, the duration of the lease, late payments penalties and the rules and restrictions to abide when living in the house.
- Read the contract
At this point read the contract! This is a vital step that you should undertake as a landlord. All the agreements made along with the tenant at the time of the offer should be clear in the contract. However, if there is anything unclear make sure to sort everything out before the tenancy starts. The lease agreement is indispensable to both the tenant and the landlord because it is supplied with an inventory of all the furniture and appliances within the house in addition to the current condition of the house. All these details will be useful at the time when the lease will be over.
- Choose a tenant with good credit
The moment your house is ready to be rented, you should start by looking for a tenant with good credit. Being aware of the tenant’s consolidated credit check is imperative. This is because you will have not only to depend on the tenant’s rent payment but also you will have to make sure you have chosen someone who will keep your house in good condition. Always look for a tenant who is responsible financially. Those who pay their bills on time and who have a good employment record.
- Check the guide price for your area
Another factor to consider while renting a house is to check the guide price for your area. Having an idea of the rental prices will help you to make an offer. Different states have their rental price details. Consider to look for your area rental guide prices and decide upon the reasonable rental fee that you are willing to offer to the tenant.
- Expert Advice
On a final note, seek the expert advice. While you want to turn your house in residential rental property, it is good to talk with real estate barrister to be sure that you are abiding by the laws governing a rental property.
Author Bio: Focused on providing information for anyone in need of debt relief, Jackson writes a blog on debt settlement, debt consolidation, tax debt relief and student loan debt which helps to find the debt solution that fits their unique needs no matter the amount of debt they are in.